Roadmap to the ELD Mandate

1 ROADMAP TO THE ELD MANDATE This comprehensive guide explains the regulatory aspects of the Electronic Logging Device (ELD) mandate, with articles designed to give your fleet’s drivers and back office personnel information about new policies and procedures related to the mandate.

2 Table of Contents Training Your Team is Critical for a Successful ELD Implementation .............................................. 3 Updating Company Policies & Procedures – An Important Step in ELD Implementation .......... 4 Personal Conveyance & ELDs – How Does It Work? ............................................................................ 6 Yard Moves: Understanding ELD Mandate Rules .................................................................................. 7 FMCSA Issues “New & Improved” Guidance on Personal Conveyance Operating Status ........... 8 Deeper Understanding – Interaction of ELD and The 100 Air-Mile Radius Exception ................. 9 A Glimpse Into Roadside Enforcement of the ELD Rules .................................................................. 10 Short-Term Rental Trucks and ELDs ...................................................................................................... 11 CVSA Updates ELD Inspection Bulletin...For The Benefit of All ....................................................... 12 Repeat ELD Offenders – How Will CVSA Roadside Inspectors & FMCSA Handle Them? ........... 13 Challenging Roadside Inspection Violations Using DataQs ............................................................. 14 How Do I Request a Time Extension to Repair or Replace a Malfunctioning ELD? ...................... 15 1 Training 2 New, ELD-Specific Duty Statuses 3 Enforcement IMPORTANT DISCLAIMER: © 2019 Trimble. All rights reserved. Unauthorized duplication prohibited. Trimble and the Globe & Triangle logo are trademarks of Trimble Inc. registered in the United States and other countries. All other trademarks are the property of their respective owners. This guide is for informational purposes only and reflects our opinions on Electronic Logging Device (ELD) regulations as of the publication date. FMCSA rules and guidance may change following publication, and information in this guide is subject to change. We do not make any warranties, express or implied, concerning the content of this guide and disclaim any liability for its use. This guide does not constitute legal advice. Consult your own legal counsel to determine ELD compliance requirements for your own business operations.

3 Surprisingly, the ELD regulations do not require carriers to formally train drivers on ELDs. However, it’s a practical reality and a very good idea. The technology is new to many drivers and office personnel, the rules are detailed, and each company will have compliance policies and operational procedures related to ELD use. Even if a carrier has been using some type of electronic logging system for years, ELDs capture more data, and the rules governing ELD use are new and complex. Training Your Team is Critical for a Successful ELD Implementation TRAINING IS CRITICAL ► the look, feel and functions of the selected ELD technology ► the login and logout processes ► the methods for changing duty status from the automatically captured driving time to on-duty, not driving (line 4), off-duty (line 1), and, if applicable, sleeper berth status (line 2) ► how the special driving categories of “personal conveyance” and “yard moves” are activated, if authorized by the carrier SAFETY, COMPLIANCE, DISPATCH, OPERATIONS AND MAINTENANCE Safety, Compliance, Dispatch, Operations and Maintenance personnel will need to become familiar with certain items, too: ► the look, feel and functions of the selected ELD technology ► the look, feel and functions of the office software associated with ELDs ► the data captured, and the reports generated by the ELD office software ► how to edit and annotate the ELD record when driver mistakes are made It’s hard to overstate the importance of training. Simply put, it’s critical to successfully implementing ELDs. And, carriers should consider providing multiple training sessions for all affected drivers and personnel. Keep in mind that many people learn by doing. Consider having an ELD set up in the training room to facilitate ‘hands-on’ use of the device. Trimble has an entire training team with expertise in developing information and materials to help customers with their training needs. No need to reinvent the training wheel! UTILIZING FMCSA RESOURCES The Federal Motor Carrier Safety Administration (FMCSA) has a list of Frequently Asked Questions that can be used to supplement the training materials used. For example, the following two FAQs could be weaved in to a training program: Q: Who can edit an electronic logging device (ELD) record? A: Both the driver and authorized carrier staff can make limited edits to an ELD record to correct mistakes or add missing information. All edits must include a note (annotation) to explain the reason for the edit. In addition, the driver must confirm (certify) that any carrier edit is accurate, and resubmit the records. If the driver chooses not to re-certify his or her RODS, this is also reflected in the ELD record. The ELD keeps the original, unedited record, along with the edits. Example: a carrier edits a record to switch a period of time from “off-duty” to “on-duty not driving”, with a note that explains “Driver logged training time incorrectly as off-duty.” The edit and annotation are sent to the driver to verify. The edit is not accepted until the driver confirms it and resubmits the RODS. Q: What are the options for ELDs to electronically transfer data? A: According to the ELD rule technical specifications, an ELD must support one of two options for electronic data transfer: The first option is a “telematics” transfer type ELD. At a minimum, it must electronically transfer data to an authorized safety official on demand via wireless Web services and email. The second option is a “local” transfer type ELD. At a minimum, it must electronically transfer data to an authorized safety official on demand via USB2.0 and Bluetooth®. 1 Training

4 1. USE OF TRUCKS BY DRIVERS WHILE OFF-DUTY Professional truck drivers operating their trucks (unladen) for personal reasons while on-the-road, and off-the-clock, is nothing new. In fact, personal use (called “personal conveyance” or “PC” by government regulators) is a common and accepted industry practice. As a result, the ELD rules accommodate this type of off- duty truck use. For employee drivers and company owned trucks, it’s the carrier’s choice on whether it will allow use of PC. Does your company have a policy allowing it? If so, does it need to be updated? If not, should your company consider having a policy? Is your company aware of FMCSA’s guidance on PC? 2. MOVING TRUCKS ON A YARD Before ELDs, when a driver moved a truck on a yard, the hours of service rules required the driver to record that time on his paper log. It was an honor system. ELDs will automatically capture every truck move on a yard, and record it as driving time, unless the driver pushes the “yard moves” button. If the yard moves button is pushed, the ELD will record that time as on-duty not driving time (line 4). If a mechanic or other non-driver moves a truck on a yard (or on a highway to road test a truck), and doesn’t log in to the ELD device, the ELD label the person as an “unidentified driver”, and it will capture the time as “unassigned driving time.” Does your company have a policy on non-drivers moving trucks on a yard, or on the road? Does your company have a policy on whether non- drivers, who move trucks on a yard/road, are given an ELD user account? If not, you’ll need a policy. 3. UNASSIGNED DRIVING TIME One of the newer concepts with ELDs is “unassigned driving time.” As mentioned in B above, ELDs will capture truck movement, even if no one is logged in to the ELD. Each one of these “unassigned driving time” events must be reviewed by the driver of that truck during his/her next login, and that time must either be accepted or rejected by the driver. If the driver rejects the time, the rules require carrier staff to review all “unassigned driving time” events, and assign them to the appropriate driver, or explain in a note on the ELD record why it is unassigned. Does your company have a policy and procedure on who will handle this responsibility? Does your company have or need a policy designed to limit the number and type of “unassigned driving time” events? 4. EDITING OF ELD RECORDS Drivers will make mistakes while using ELDs, and many of them will be honest mistakes. The new rules accommodate this reality, and allow both drivers and carrier staff to make needed edits. Does your company have a policy regarding whether you prefer drivers make needed edits, or company staff? Should you consider how quickly edits must be made? What if a driver wants to edit his/her ELD record days after it was submitted? 5. ELD MALFUNCTIONS ELDs are computers, and computers can and do fail. When they do, the ELD rules require drivers to notify the carrier in writing within 24 hours, and default to a paper log during the malfunction time- period. Also, the rules require malfunctioning ELDs be fixed or replaced within 8 days. Companies may want to consider Reviewing and updating company policies and procedures is an important and necessary step toward successful electronic logging device (ELD) implementation. Most carriers have formal safety and compliance-related policies and procedures, and they should be reviewed and updated as part of the transition to ELDs. Here are some issues to consider during the review process: 1 Training Updating Company Policies & Procedures – An Important Step in ELD Implementation

5 maintaining a “safety stock” of backup ELDs which can be swapped for malfunctioning units during the 8-day grace period. Does your company have policies and procedure covering these new requirements? What is the preferred company procedure for drivers to communicate a malfunction in writing within 24 hours (i.e., an email, a text message, listing it on a DVIR)? Who in the company is responsible for working with your ELD vendor when an ELD malfunctions? If your vendor cannot provide a solution within 8 days, who in the company is responsible for working with FMCSA on an extension? 6. SAFETY & COMPLIANCE BONUSES If you have a bonus program for drivers tied to safety and/ or compliance performance, does it address hours of service compliance and ELD use? If not, should you consider it to help facilitate driver acceptance of ELDs, and proper use? 7. DISCIPLINARY POLICIES Paper logs allowed, and required, drivers to log all working and off-duty time in 15 minutes increments. With this paper log limitation, a driver, who may have been a few minutes past the maximum driving time, likely reflected it on the paper log as exactly 11 hours of driving time. ELDs will capture every minute of driving time, which means 11 hours and 5 minutes of driving time will be reflected as just that. And, it is a violation. Does your company’s disciplinary policy for hours of service violations address this new ELD reality? A similar scenario could develop for drivers not taking 10 or more hour off-duty between work shifts. Does your company policy address this as well? 8. ANTI-HARASSMENT The new ELD rules include language that strictly prohibits a carrier from using information obtained from the ELD to force a driver to violate applicable hours of service rules, or drive while either ill or fatigued. This rule is separate and distinct from FMCSA’s anti- coercion rule. Does your company have a policy designed to ensure compliance with this new anti-harassment rule? And, if a driver believes the company may be in violation of this rule, does your company have a procedure in place to handle this type of driver complaint? Are drivers aware of the process to file such complaints with FMCSA? This list is not exhaustive, and is intended to get carrier personnel thinking about current policies and procedures that may need to be updated, and new company policies that may be needed. 1 Training

6 2 ELD-Specific Duty Statuses Professional truck drivers operating their trucks (unladen) for personal reasons while on-the-road, and off-the-clock, is nothing new. In fact, personal use (also called “personal conveyance” or PC by government regulators) has been a common and accepted industry practice for many years. Personal Conveyance & ELDs – How Does It Work? As a result, the Federal Motor Carrier Safety Administration (FMCSA) included and accommodated this type of off-duty truck use in its ELD mandate rule, and labeled it as one of two “special driving categories,” along with truck moves in a yard. So, while PC is not new, it’s garnered a fair amount of recent attention in the trucking industry since it comes with new procedures under the ELD rule. So, how does this longstanding practice work with ELDs? Is it still considered off-duty time and, if so, how is it reflected on the driver’s ELD record? And, can PC time be edited by the carrier staff if it’s used improperly by a driver? Let’s take each one of these questions in turn. PERSONAL CONVEYANCE & ELD – HOW DO THEY WORK TOGETHER? Under the ELD rule, a carrier that allows its drivers to use their trucks as a personal conveyance may configure the ELD to provide this special driving category as an option. This means, in most cases with most suppliers, the ELD software will include a functioning PC ‘soft button’ on the display screen to give drivers the ability to select this category of driving when they are off-duty, and their truck is unladen. Keep in mind that, generally speaking, it’s the carrier’s choice on whether it will allow use of PC. A carrier may also choose to disable the PC button. [Note: this carrier choice gets a little more complicated for carriers with owner-operators (i.e., independent contractors).] MEETING FMCSA REQUIREMENTS When drivers meet the FMCSA criteria (and perhaps additional company criteria) to use the PC category, they must first change their duty status to “off-duty,” and then select PC using the soft button on the display screen. At this point, when the truck starts moving, the ELD will automatically capture and place this off-duty driving time on line 1 of the ELD record (the off-duty line), and not on the line 3 driving line. And, under the ELD rule, this off-duty driving time must look different on the electronic record, that is, it must be programmed by the supplier to be either a dotted, dashed or shaded line so that it can be easily seen/viewed as off- duty PC driving. When a driver is finished using the truck for PC, the driver must deselect PC by again pushing a soft button on the display screen. WHAT NOW? Most drivers and companies will use the PC line as intended and consistent with FMCSA’s longstanding guidance (i.e., short driving distances, driver not under dispatch, has no work responsibilities, is truly off-duty, and truck is unladen). However, it’s likely there will be occasions when the PC line is used improperly by a driver. When a carrier becomes aware of improper PC use by a driver, an office person with ELD administrative rights will be able (and is encouraged) to propose an edit to the driver, along with the required annotation. If accepted, the edit will move the PC time from the off-duty line (line 1) and properly place that time back on the driving time line (line 3). This edit will help avoid potential false log violations. As mentioned, PC is a common and accepted industry practice that will continue under the ELD rules. While the criteria for using PC is not clearly spelled out in the ELD rule, FMCSA’s longstanding PC guidance still applies. That guidance can be found here at Question 26.

7 As most in the trucking industry know by now, the federal ELD mandate rules create two separate special driving categories called “authorized personal use” of a commercial motor vehicle (CMV), and “yard moves.” Use of these driving categories is both authorized and regulated under the ELD rules, but their use is not required. Yard Moves: Understanding ELD Mandate Rules “AUTHORIZED PERSONAL USE” OF A COMMERCIAL MOTOR VEHICLE (CMV) AND “YARD MOVES” These two categories provide some needed flexibility by allowing “authorized personal use” of a CMV to be electronically recorded as off-duty time on line 1, when that category is allowed by a company and selected by one of its drivers. And, the “yard moves” category is authorized by the rules to be electronically recorded as on-duty, not driving time on line 4. It’s clear that much of the industry will use these categories because they are both common and central to how the industry operates. And, while the discussion (perhaps even debate) will likely continue about just what is “authorized personal use” (more commonly called “personal conveyance”), the question over what constitutes a “yard” under the ELD rules was answered by FMCSA. And, the answer might not be what you expected. SO, WHAT IS A “YARD”? During the rulemaking process, FMCSA considered but then chose not to provide a definition of a “yard.” And, importantly, in follow up questions to FMCSA, the agency chose not to provide any thoughts or guidance on the term “yard”. Wait...what? It probably bears repeating and emphasizing—FMCSA chose not to define or provide any guidance on the term “yard” for the purposes of the “yard moves” driving category. So, without a federal definition or guidance, trucking companies have the opportunity to define a “yard” for their own operations, and they should also consider providing instructions and training to their drivers on whether, where and when they may select and use the “yard moves” driving category. A yard could be limited by a trucking company to its own terminals or company facilities. Or, a yard could be expanded beyond that to include: ► a customer’s yard; ► a receiver’s facility; ► a maritime terminal; ► a rail ramp; ► a drop yard; or, ► any other similar location or facility No matter how each trucking company defines a yard, and uses the “yard moves” category, a critical item to address with drivers is that they must remember to select and unselect the “yard moves” category on the ELD for it to properly record the driving time on a yard as on-duty, not driving time. 2 ELD-Specific Duty Statuses

8 2 ELD-Specific Duty Statuses The first thing many will notice is the ability of drivers to use the PC status even if the CMV is laden. This new, and significantly longer guidance replaces the Agency’s advice and direction of the topic originally issued way back in the mid-1990s. It’s likely to be more helpful than past guidance since it provides examples to drivers, carrier safety personnel and the enforcement community that are designed to help determine if a “...movement of a CMV is an appropriate off-duty use.” A link to FMCSA’s new guidance is provided at the bottom of this article. Below are FMCSA’s examples of what it calls “appropriate uses” of a CMV while off-duty for PC: 1. Time spent traveling from a driver’s en route lodging (such as a motel or truck stop) to restaurants and entertainment facilities; 2. Commuting between the driver’s terminal and his or her residence, between trailer drop lots and the driver’s residence, and between work sites and his or her residence; 3. Time spent traveling to a nearby, reasonable, safe location to obtain required rest after loading or unloading. The resting location must be the first such location reasonably available; 4. Moving a CMV at the request of a safety official during the driver’s off-duty time; 5. Time spent transporting personal property while off-duty; and, 6. Authorized use of a CMV to travel home after working at an offsite location. Numbers 3 & 4 above are likely to be welcomed by many professional drivers since they address commonly encountered situations with shippers, receivers and law enforcement officials in some States. Examples of uses of a CMV that, according to FMCSA, “would not qualify” as PC, are: 1. The movement of a CMV in order to enhance the operational readiness of a carrier. For example, bypassing available resting locations in order to get closer to the next loading or unloading point or other scheduled carrier destination; 2. After delivering a towed unit, and the towing unit no longer meets the definition of a CMV, the driver returns to the point of origin under the direction of the carrier to pick up another towed unit; 3. Continuation of a CMV trip in interstate commerce in order to fulfill a business purpose, including bobtailing or operating with an empty trailer in order to retrieve another load or repositioning a CMV (tractor or trailer) at the direction of the carrier; 4. Time spent transporting a CMV to a facility to have maintenance performed; 5. After being placed out of service for exceeding the maximum periods permitted under Part 395, time spent driving to a location to obtain required rest, unless so directed by an enforcement officer at the scene; and, 6. Time spent traveling to a motor carrier’s terminal after loading or unloading from a shipper or a receiver. While FMCSA’s new guidance is clearly intended to help drivers better understand the PC operating status, and when it can be legally used, the Agency also makes clear that carriers can establish “personal conveyance limitations either within the scope of, or more restrictive than, this guidance, such as banning use of a CMV for personal conveyance purposes, imposing a distance limitation on personal conveyance, or prohibiting personal conveyance while the CMV is laden.” In other words, carriers still have discretion on whether, and what, it will allow for PC use by employee drivers. On May 31, 2018, the Federal Motor Carrier Safety Administration issued its long-awaited, revised guidance on personal conveyance (PC)—an operating status that allows a driver to record time operating a CMV for personal reasons as off-duty when the driver is relieved from work and all responsibility for performing work by the motor carrier. FMCSA Issues “New & Improved” Guidance on Personal Conveyance Operating Status

9 2 ELD-Specific Duty Statuses In 2012, when Congress passed a law requiring the USDOT to mandate ELD use by professional truck drivers, they recognized that many drivers operate locally, they don’t work long hours and, as a result, they don’t complete a daily paper log. This recognition led Congress to allow the USDOT to exempt from the ELD mandate ‘short haul’ drivers not required to complete a daily paper log. But, as simple as that may sound, the application of this paper logbook exception to the ELD mandate got a bit more complicated when it came to ‘rule writing’ time at FMCSA. BREAKING DOWN THE RULES FMCSA realized that many short haul drivers who regularly operate under the 100 air-mile radius exception ** are also faced with a common trucking reality—that is, any given load may take a driver outside the 100 air-mile radius, or the delivery location coupled with an increasingly congested road system, may cause a driver to return to his work location more than 12 hours after departing. In either of these cases, a driver is ineligible for the 100 air-mile radius logbook exception that day, and must prepare a paper log for that day. During ELD rule-writing time, FMCSA had to answer the following question—how many times may a driver operate outside of the 100 air-mile radius exception before that driver is required to use an ELD? After receiving and considering input from the trucking industry on this question, FMCSA decided the ELD rule should allow a ‘100 air-mile radius driver’ ** to operate outside the 100 air-mile radius exception for not more 8 days within any 30-day period, and still be exempt from use of an ELD. This means that, under the new ELD rules, a typical ‘100 air-mile radius driver’ is still only required to complete a paper log for those days (up to 8) when reality hits and he/she exceeds the 100 air miles or the 12-consecutive hour limitation. This also means that a driver is required to use an ELD if he/she operates outside the 100 air-mile radius exception for 9 or more days within any 30-day period. HERE’S WHAT YOU NEED TO KNOW But, after FMCSA published its ELD mandate rules, an important question remained unanswered. That is, if a driver operates outside the 100 air-mile radius exception ** for 9 or more days within any 30-day period, how long must this short haul driver use an ELD when operating his/her truck in the future. Forever? For a year? For a month? Until the cows come home? In March, 2017, in response to an industry inquiry, FMCSA answered this question in writing with the following, short response: “Yes, the driver can return to recording his/her records of duty status on a paper log when the operation meets the requirements of a short haul operation.” What does that answer mean? It means that the “any 30-day period” is a rolling 30 days. As soon as the driver is back within the “not more than 8 days within any 30-day period” rule, he/she can return to using a paper log. If it helps, think of this new ‘8 days within any 30-days’ rule just as you would think of the ’70 hours in any 8-day period’ rule. ** Note: There is also a similar 150 air-mile radius exception from paper logs for non-CDL drivers. FMCSA’s new ‘8 days within any 30-days’ rule also applies to drivers regularly operating under the 150 air-mile exception. If you’ve spent time in or around the trucking industry, you know that many professional drivers operate under the longstanding “100 air-mile radius exception.” Deeper Understanding – Interaction of ELD and The 100 Air-Mile Radius Exception

10 3 Enforcement ROADSIDE ENFORCEMENT AND THE OUT-OF-SERVICE CRITERIA (OOS CRITERIA) FMCSA and its State enforcement partners are preparing materials and conducting training for their compliance and enforcement staff. For State and Canadian Provincial enforcement, the Commercial Vehicle Safety Alliance (CVSA), an organization dedicated to improving the uniformity of roadside CMV inspection and enforcement efforts in North America, recently added ELD-related information to its “North American Standard Out-of-Service Criteria” (OOS criteria), the pass-fail criteria for driver and vehicle inspections. The purpose of the OOS criteria is to identify critical violations that render the driver, vehicle and/or cargo out of service until the condition(s) or defect(s) can be corrected or fixed. A CLOSER LOOK AT VIOLATIONS In 2017, CVSA added ELD violation information to its OOS criteria. To do this, CVSA reviewed existing paper logbook violations, and added information explaining how these OOS logbook violations will be enforced on drivers with ELDs. These CVSA explanations are provided in the table below. Keep in mind that the violations included in the table are only those that will result in an OOS order. There are other ELD-related violations that could be cited during a roadside inspection, but would not result in the driver being placed OOS. For example, these include missing ELD record information such as a shipping document number, a truck or tractor identification number, or a trailer number. These non-OOS violations will not be included in CVSA’s OOS criteria. An important aspect of any new regulation is its enforcement. Carriers and drivers need to know how certain hours of service and ELD-related violations will be treated, particularly during roadside inspections. A Glimpse Into Roadside Enforcement of the ELD Rules Paper Logbook Out-of-Service Violation Corresponding ELD Out-of-Service Violation No record of duty status (i.e., log) 1. If a driver is required to have an ELD and the vehicle is not equipped with an ELD (or AOBRD until Dec 17, 2019), the driver is considered to have no record of duty status 2. If a driver does not log into the ELD as required (see 395.22(e)), the driver is considered to have no record of duty status 3. If a driver is unable to produce or transfer the data from and AOBRD or ELD to an authorized safety official as required by 395.15(b) or 395.24(d), the driver is considered to have no record of duty status 4. If a driver/carrier is using an ELD that is not authorized by the FMCSA per 395.22(a), the driver/carrier is considered to have no record of duty status 5. If a carrier does not repair a malfunctioning ELD within 8 days, or obtain an extension from the FMCSA Division Administrator as required by 395.34(d), the driver is considered to have no record of duty status False log If a driver is required to have an ELD and the vehicle is not equipped with an ELD (or AOBRD until Dec 17, 2019), the driver is considered to have no record of duty status Driver not in possession of previous seven (7) days of logs If a driver with a malfunctioning AOBRD or ELD fails to reconstruct logs for the current 24-hour period and the previous 7 days as required by 395.15(f) or 395.34(a)(2), the driver is considered to not have the previous 7 days of logs 1. 2. 3.

11 3 Enforcement THE EXEMPTION & ITS EFFECTIVE DATE FMCSA’s decision provides a “limited exemption” for the driver and carrier of a CMV rented for 8 days or less, regardless of the reason for the rental. The exemption is effective on October 11, 2017, and is available for 5 years through October 11, 2022. THREE BASIC CONDITIONS REQUIRED FOR USE OF THE EXEMPTION 1. Drivers must have a copy of the FMCSA exemption notice in their possession while operating the rental CMV, and must present it to law enforcement upon request. The Notice can be found and printed from this page on the FMCSA website. 2. Drivers must have a copy of the rental agreement in the rental CMV, and must present it to law enforcement upon request. The agreement must clearly identify the parties to the agreement, the vehicle, and the dates of the rental period. 3. Drivers must possess copies of their paper logs for the current day, and the prior 7 days (if required on those days). A CLEAR & CONCISE PROHIBITION FMCSA makes clear that any evidence a carrier has replaced one rental CMV with another on 8-day cycles, or attempted to renew a rental agreement for the same CMV for an additional 8 days, will be regarded as a violation of the exemption, and subject the carrier to penalties for failure to use an ELD. UNIFORM ENFORCEMENT THROUGH STATE PREEMPTION FMCSA’s notice also makes clear that during the 5-year period this exemption is in effect, no State “shall enforce any law or regulation applicable to interstate commerce that conflicts with or is inconsistent with this exemption with respect to a firm or person operating under the exemption.” AN ACCIDENT REPORTING REQUIREMENT Carriers must notify FMCSA via email (at [email protected]) within 5 business days of any DOT-recordable accident involving any of its drivers operating under this rental truck ELD exemption. In its notice at the link above, FMCSA specifies 11 different items that must be reported to the Agency (e.g., date, location, driver’s name and license number, etc.) NOT SURE WHICH TRUCKS ARE IMPACTED? While the exemption and its conditions are fairly clear on their face, there will likely be questions posed by carriers and drivers, as has been the case for most parts of the ELD mandate rules. It’s a good idea to check FMCSA ELD website regularly for the Agency’s responses to the inevitable questions about application of this exemption. For example, someone is likely to pose a question concerning use of the exemption for the first 8 days of a 30-day rental agreement. On October 11, 2017, FMCSA issued a favorable decision on a Truck Rental and Leasing Association (TRALA) request for a 5-year exemption from ELD use by drivers and carriers operating short-term rental trucks for 30 days or less. Although TRALA requested the exemption for 30-days or less truck rentals, FMCSA agreed to grant the ELD exemption for CMVs (i.e., trucks) rented for 8 days or less. Clearly an important and significant difference, but one that will provide relief for many carriers and drivers renting trucks for unexpected breakdowns, short-term additional capacity, etc. Below are some of the important details of FMCSA’s decision that carriers and drivers need to know and follow, when using this newly-granted exemption. Short-Term Rental Trucks and ELDs

12 3 Enforcement During the first week of April 2018, CVSA staff learned that some inspectors did not fully understand when they should place a driver out-of-service if the driver’s ELD failed to electronically transfer the hours-of-service record during an inspection. One of the main reasons for the lack of certainty on the part of some roadside inspectors was language or, maybe better described as lack of language, in CVSA’s w“ELD Inspection Bulletin.” CVSA finalized that Bulletin in December 2017, and widely distributed it to the 12,000+ inspectors in North America at that time. Under the “Electronic Data Transfer” section, there was only one sentence that briefly described the electronic data transfer requirement in FMCSA’s rules. This sentence, and the lack of understanding of it by some inspectors, likely resulted in some drivers being placed out-of-service in early April, even when there was a good reason for an electronic data transfer failure (e.g., there was no network available at the location). To their credit, CVSA staff realized that clarifying language was needed in the Bulletin, and brought it to the attention of the membership at the Portland conference. A small committee was quickly assembled on-site to draft additional, clarifying language for the Bulletin, which was then approved by the committee of jurisdiction, followed by a favorable vote of the CVSA Board on April 13, 2018. The ELD Inspection Bulletin now contains the following, more comprehensive language designed to provide more clarity on when a driver should be placed out-of-service for failing to produce an ELD hours-of-service record: “ELD Inspection Guidance” If a driver cannot produce hours of service records using any of the options described below, and the device is not in an active malfunction, the driver shall be placed out of service for no record of duty status. See footnote 12 in the CVSA out of service criteria before citing or placing a driver out of service. The primary method to verify a driver’s hours-of-service is electronic data transfer. ► Telematics (web services and email); or ► Local (USB and Bluetooth) If the data transfer does not work, use the display screen of the ELD or a print out from the ELD to verify the driver’s hours of service. Note: Retrieve instruction manual/ instruction sheets from the driver or the FMCSA ELD registration list describing the ERODS transfer process.” Three final thoughts about this recent CVSA action: 1. It demonstrates the value of CVSA, and sheds light on its ability to gather information on enforcement-related issues and address them in a timely fashion; 2. It should result in greater inspector awareness and more uniform enforcement of the ELD mandate throughout North America; and, 3. The updated Bulletin can be used as a training tool by carriers to further educate drivers on the ELD data transfer process, and under what circumstances an out-of-service order will issued. For more information from the CVSA, you can access the updated “ELD Inspection Bulletin” here. CVSA Updates ELD Inspection Bulletin... For The Benefit of All

13 CVSA Updates ELD Inspection Bulletin... For The Benefit of All 3 Enforcement This raises an interesting question: what happens if this same driver is discovered during a subsequent roadside inspection (in the same State or in a different State/Province) to again be operating without an ELD? This question about ‘repeat ELD offenders’ was the subject of an interesting discussion/debate at CVSA’s recent Spring 2018 conference and workshop in Portland, OR. Currently, there is no additional OOS provision for repeat ELD offenders, and some believe there should be. At the Portland conference, representatives from two states pushed for an amendment to the OOS criteria that would require repeat ELD offenders to remain at the inspection location until a compliant ELD is installed in the truck. These State representatives argued that, without this type of additional OOS provision, repeat offenders could continue to be dispatched and, if inspected, they would simply serve the mandatory 10-hour OOS period, and continue to operate until they were inspected again. In effect, these State officials argued that the only way to change the non-compliant ELD behavior of repeat offenders (drivers and carriers) is to force the on-site installation of an ELD. Some in the meeting supported the idea as a means to change behavior and get more immediate ELD compliance. Few in the meeting spoke directly against the idea, but rather raised questions about the practicality of having ELDs installed on-site, the likely challenges the driver would face if an installation could not be completed in a reasonable amount of time (e.g., within 24 hours), and whether repeat offenders are better addressed during compliance audits. Some also questioned whether this might be a theoretical concern that wouldn’t play out in reality. An FMCSA representative reacted to the proposal by stating that the Agency is planning to regularly generate internal reports to determine whether there are repeat ELD offenders. If discovered, the carriers would be placed at or near the top of FMCSA’s on-site compliance review list. This FMCSA official also encouraged State and Provincial officials to communicate directly with FMCSA officials when repeat ELD offenders are discovered during roadside inspections, which will also help FMCSA prioritize ELD non-compliant carriers for on-site interventions, potential civil penalties, and perhaps even criminal investigations. Following the lively and interesting discussion, the Chairman of the committee (where the proposal was raised) tabled the proposal. In tabling it, he requested that the FMCSA representative bring data to the next CVSA meeting in September 2018 reflecting (1) the number of repeat ELD offenders identified by FMCSA, and (2) the number of carriers prioritized for compliance audits based on the data. The FMCSA official agreed to do so. This data will likely drive another discussion of the proposal in September, and could result in change in the ELD portion of the OOS criteria. If FMCSA’s internal monitoring and reports find that repeat ELD offenders are a significant problem, CVSA action before September is possible. The Commercial Vehicle Safety Alliance’s out-of- service (OOS) criteria advises State and Canadian Provincial roadside inspectors to place a driver OOS for 10 consecutive hours at the inspection location if that driver is found to be operating without an ELD, when one is required. This CVSA OOS provision, and several others related to ELD use, went into effect on April 1, 2018. In this scenario, after a driver completes the 10-hour off-duty OOS period, the driver is allowed to complete the trip on which he/she is currently dispatched. Both CVSA and FMCSA have made clear, however, that the carrier may not legally dispatch this driver again until the truck being operated is equipped with a compliant ELD. Repeat ELD Offenders – How Will CVSA Roadside Inspectors & FMCSA Handle Them?

14 3 Enforcement WHAT IS DATAQS? DataQs is an online, electronic system designed for CMV drivers and motor carriers to file challenges to Federal and State truck and bus safety data (e.g., roadside inspection or crash-related data) released to the public by FMCSA. The DataQs system is an FMCSA system that automatically forwards data challenges to the appropriate Federal or State office for review and resolution. MUST I REGISTER TO USE DATAQS? Yes, to use DataQs, you must register and create an account. If you have not done so, go to https://dataqs.fmcsa.dot.gov and first create an “FMCSA Portal Account.” Once created, you can login to your portal account to use DataQs. HOW DO I SUBMIT A CHALLENGE USING DATAQ S ? 1. On the main “My DataQs” page click on the orange “Add a Request” button. 2. On the “Add a Request – Step 1” page, click on “Inspections/ Violations” under the “Roadside” category; to go to the next page, click on “Next” at bottom right. 3. On the “Add a Request – Step 2” page, click on “Violation is incorrect, listed multiple times, or missing Intermodal Equipment Provider (IEP)/shipper information”; to go to the next page, click on the “Next” at bottom right. 4. On the “Add a Request – Step 3” page, read the information presented then click on the “Next” at bottom right. 5. On the “Add a Request – Step 4” page, you must enter information from the inspection report that you’re challenging. Enter information in the “Report Number” date fields and, if the inspection report is in the FMCSA system, much of the page should be automatically populated with information. You will also need to manually enter some requested information, and provide a brief explanation of why you’re challenging the violation. Once fully completed, click “Enter Violation”, and then the “Next” button at bottom right. 6. On the “Add a Request – Step 5” page, read the information, and then attach any documents you have that support your challenge. Click the “Next” button at bottom right. 7. On the “Add a Request – Step 6” page, review the information and, if correct, confirm your request (i.e, your challenge) by clicking the orange “Submit” button. You will receive a confirmation email that the request has been properly submitted. WHAT HAPPENS NEXT, AND HOW LONG WILL IT TAKE? Your request will be automatically routed to the correct State for action. FMCSA’s goal for a response time is 10 business days. Depending on the State, the number of requests in the queue in that State, and the complexity of your request, it could take longer than 10 business days for it to be handled, and a decision rendered. If you’re logged in to the DataQs system, you can view the status of your request/challenge on the “My DataQs” dashboard. There are numerous ‘status’ types a user might see as a request moves through the review process. Examples of the status include: “Open – In Review,” “Open– Pending Officer Comments,” “Open – Pending Court/Administrative Comments,” “Closed – No Data Correction Made,” and “Closed – Data Correction Made.” These are examples, and there are several other status types. You will receive email notifications each time the status of your request changes, and when a decision is made and your request is closed. Challenging Roadside Inspection Violations Using DataQs In anticipation of the risk that some of our grandfathered AOBRD customers could be improperly cited with certain ELD violations (e.g., screen cannot be viewed from outside of the truck or ELD data file transfer), below is a guide to help explain how customers can use the FMCSA DataQs system to challenge improper roadside inspection violations.

15 3 Enforcement NOW, WHAT’S THE PROCESS FOR REQUESTING AN EXTENSION OF THE 8-DAY REPAIR OR REPLACE WINDOW? 1. Per Sec. 395.34(d), you must submit a request, within 5 days of a driver notifying you of the ELD malfunction, to the FMCSA Division Administrator in the State where you maintain your principal place of business (for FMCSA compliance purposes). A State-by-State list of FMCSA offices, including address and phone number, is found at this link: https://www.fmcsa.dot.gov/ mission/field-offices 2. Your request must include: a. The motor carrier name, your name, company address and company phone number. b. The make, model and serial number of each malfunctioning ELD. c. The date and geographical location of each ELD malfunction, as reported by your driver to you. d. A short statement describing the actions you’ve taken to make a ‘good faith effort’ to repair, replace or service the broken ELD(s), including why you need additional time. A good description of your good faith effort is critical. 3. There is no FMCSA form for making this request. It can be made verbally (e.g., on the phone) and then followed up with an email message. Given the time-sensitive nature of your request, you should call the FMCSA office to explain your situation, and to obtain the name and email address of the person to whom your email request should be sent. 4. Send your short email message. Be concise, respectful and professional. WHAT HAPPENS NEXT 1. Whether your request is granted or not, the FMCSA will email you a short letter. 2. According to FMCSA’s rules, this letter is a “final agency action,” which means there is no appeals process. 3. If your request is granted, the letter will likely include a requirement that your driver carry a copy of the letter in the truck with the malfunctioning ELD, and that you keep a copy of the letter at your place of business. 4. If your request is granted, there is no requirement for you to notify FMCSA when your ELD is repaired or replaced (unless the FMCSA letter includes that condition, which is unlikely). WHAT HAPPENS IF FMCSA DOESN’T QUICKLY RESPOND TO MY REQUEST FOR A TIME EXTENSION? It is almost certain that some FMCSA offices won’t be able to quickly respond to extension requests. Fortunately, Section 395.34(d)(5) of FMCSA’s rules says that if a carrier’s extension request is timely filed and complete, then they are “deemed in compliance” until FMCSA makes an extension determination. This section clearly anticipates that there will be times when an FMCSA office won’t be able to respond within the 8-day period. Section 395.34(d) of FMCSA’s ELD mandate rules requires a motor carrier to repair or replace a malfunctioning ELD “within 8 days of discovery of the condition or a driver’s notification to the carrier, whichever occurs first.” Section 395.34(d) of FMCSA’s rules also provides an opportunity for a motor carrier to seek an extension of the 8-day period, if the carrier is unable to repair or replace the ELD within the 8 day period. How Do I Request a Time Extension to Repair or Replace a Malfunctioning ELD?

16 4 AOBRDs v. ELDs AOBRDs v. ELDs – Highlighting Some Differences DEVICE FUNCTIONALITY AOBRDs ELDs “Integral Synchronization” with Vehicle Required but term is not defined in FMCSA rules Integral synchronization required. ELD must interface with CMV engine control module to automatically capture engine power status, vehicle motion, miles driven, engine hours. (CMVs older than MY 2000 exempted) Recording CMV Location Required at each change of duty status. Manual or automated Automated entry required at each change of duty status, at 60-minute intervals while CMV in motion, at engine on and off, and at beginning and end of personal use and yard moves Graph Grid Display Not required. Only time and sequence of duty status changes must be shown, including starting time of each day Required. Must be able to show a graph grid of driver’s day either on display or on a printout HOS Advisory or Warning Messages Not required or addressed Not required. “Unassigned driving time/miles” warning must be provided upon login “Default” Duty Status Not required or addressed On-duty not driving status, when CMV has not been in-mo - tion for 5 consecutive minutes, and driver has not respond - ed to required ELD prompt within one minute. No other non-driver initiated status change is allowed Communication/ Data Transfer Methods to Law Enforcement Not addressed – some interface between AOBRD support system and printer Required. Two Options: 1. Telematics-must transfer data via both wireless web services and wireless email 2. Local Transfer-must transfer data via both USB 2.0 and Bluetooth. Both types of ELDs must be capable of displaying standardized ELD data set to authorized safety officials via display or printout Resistance to Tampering AOBRD and support systems must be tamperproof to maximum extent practical Must not permit alteration or erasure of original information collected concerning driver’s record, or alteration of the source data streams used to provide that information. ELD must support data integrity check functions Sensor Failures and Edited Data Must identify sensor failures and edited data Must have capability to monitor its compliance (engine connectivity, timing, location, etc) for detectable malfunctions and data inconsistencies. ELD must record these occurrences. Information originally compiled by Scopelitis Transportation Consulting, LLC

17 AOBRDs v. ELDs – Highlighting Some Differences 4 AOBRDs v. ELDs DEVICE DISPLAY AOBRDs ELDs Driver CDL Information Not required or addressed Must be displayed in header of daily ELD record CMV VIN Number Not required or addressed Must be displayed in header of daily ELD record Carrier DOT Number Not required or addressed Must be displayed in header of daily ELD record Information originally compiled by Scopelitis Transportation Consulting, LLC

18 4 AOBRDs v. ELDs AOBRDs v. ELDs – Highlighting Some Differences OPERATIONAL & MISCELLANEOUS ISSUES AOBRDs ELDs “Unassigned Driving” Time Not required or addressed Must be captured and driver must approve or reject at time of login. If rejected, back office staff must reconcile and retain “Special Driving Categories - Yard Moves” Not required or addressed by rule. Market has resulted in vendor inclusion in AOBRDs Defined under new “special driving categories” section. If used, must be selected and deselected manually by driver, and is captured as “on-duty not driving” while in private yard. No mileage or time limits prescribed. Carrier may elect not to use special category “Special Driving Categories – Authorized Personal Use” of CMV Not required or addressed by rule. Market has resulted in vendor inclusion in AOBRDs Defined under new “special driving categories” section. If used, must be selected and deselected manually by driver, is shown on graph grid as driving time but is, by definition, “off duty” time. Carrier may elect not to use special category Driver Edits Not required or addressed Editing function must be provided to driver for mistakes. All edits must also be “annotated.” Driving time may not be edited by driver. Office Support Staff Edits Not required or addressed Edits by office staff allowed. All edits must be “annotated” and all office staff edits are pending until accepted by driver. Driver Certification of Daily Record Not required or addressed Required driver certification after the final required entry has been made or corrected for each 24-hour period. User Accounts Not required or addressed. Market has resulted in user IDs and passwords Unique username (and other required driver information) required for all authenticated drivers/users. Device Malfunctions – Time Period to Repair or Replace Not addressed Driver must notify company in writing within 24 hours of device malfunction. ELDs must be repaired or replaced by company within 8 days. Driver must revert to paper logs during ELD malfunction period. Device Registration & Certification Not addressed All ELDs must be registered with FMCSA, and self-certified by each vendor as compliant. Registered and certified ELDs are listed on FMCSA ELD website. Carriers may only select and use certified ELDs. Information originally compiled by Scopelitis Transportation Consulting, LLC

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TRANSFORMING THE WAY THE WORLD WORKS UNITED STATES Trimble Transportation 4400 Baker Road Minnetonka MN 55343-8684 CANADA Trimble Transportation 1100 Burloak Drive Suite 300 Burlington Ontario Canada L71 6B2 CONTACT Phone: +1-888.346.3486 Fax: +1-952.908.6129 Email: [email protected] Web: www.transportation.trimble.com IMPORTANT DISCLAIMER: © 2019 Trimble. All rights reserved. Unauthorized duplication prohibited. Trimble and the Globe & Triangle logo are trademarks of Trimble Inc. registered in the United States and other countries. All other trademarks are the property of their respective owners. This guide is for informational purposes only and reflects our opinions on Electronic Logging Device (ELD) regulations as of the publication date. FMCSA rules and guidance may change following publication, and information in this guide is subject to change. We do not make any warranties, express or implied, concerning the content of this guide and disclaim any liability for its use. This guide does not constitute legal advice. Consult your own legal counsel to determine ELD compliance requirements for your own business operations.